Peter, Paul and Mary were one of the groups I really enjoyed when I was growing up. I still do listen to their stuff as a matter of fact!
When I think of the government scam, they call social security, I think of the Peter, Paul and Mary song written by Pete Seeger in 1955, WHERE HAVE ALL THE FLOWERS GONE? That song was used to speak out against The Viet Nam War in the 60’s, perhaps, a similar song could be penned to speak out against big government in the 21st Century?
Maybe someone, with a voice better than mine, could sing a song that questions how a program that has mandated that a percentage of money be taken out of almost every payroll check written in the United States, with the employer also obligated to contribute on behalf of the employee, since 1937 (Source: Fifty Years of Social Security by Martha A. McSteen- Acting Commissioner of Social Security) and put in a government fund dedicated to retirement and disability protection could go wrong? Keep in mind that this is something private pension organizations have done very successfully for a very long time.
Everyone pays in. The money should be earning interest for years and then is returned in small monthly payments upon retirement or disability.
Brilliant! What could go wrong?
I am not an accountant but, if I could get that much money; and keep it to invest over that amount of time, over 50 years in my case, I don’t see any way I would not make that pile of money grow!
Margarette Burnette wrote, in her article (“Best High-Yield Online Savings Accounts of November 2023) that 4.5 percent is the best current interest rate for a High Yield Savings Account. Keep in mind that larger investments, generally, yield larger percentage returns. Now, imagine what kind of a return would be amassed if the total social security payments the government received between 1937 and present day was deposited as it was collected. The original rate withheld from payroll checks was1% in 1937 and rose over the years until 1990 when it topped out at 6.2%. As they say on the game shows, NO! We are not going to stop there! We are going to add to that mandated matching contributions from the employers. Now, the enormous sum of money you pictured in your head is doubled!
The average worker in the United States earns &1.7 million dollars in their lifetime after working 25 to 30 years (Per Reference). Imagine how much money the Social Security Administration takes in during every pay cycle. I ask myself, “How could they be going bankrupt?” Do you have the same question?
It seems that one thing that went wrong is that it is administered by the government. The same people that bring us The US Postal Service and Amtrack. Neither one makes a profit but, oddly enough, transportation, freight and expediting businesses in the US are thriving in the private sector (Amtrack has never made a profit per Investopedia.com, The U.S. Post Office losses doubled to 8.8 billion dollars for the year- Per MarketWatch in a post from 11/14/2019).
I believe that the government budget is based on the open spicket theory of financial management. That theory is one I invented, which declares simply that if the cost is born by others, there is no need to limit it. In the event that the money required is not available, open the spicket (Tax payer dollars and loans) and harvest the additional revenue required. If the budget is challenged close the spicket completely and publish “worst case scenarios” to encourage the masses to demand the spicket be re-opened. Repeat yearly, or as needed.
The National Government, in my opinion, should not be involved in retirement programs. The National Government, in my opinion, should be responsible for securing our borders, printing currency, and maintaining our infrastructure only. Our national debt is currently, as of November 21, 2023, $33.74 Trillion, If you start counting now, many of us will be dead before you come anywhere near that number. If the wealthiest1% in America were taxed at 100% of their assets- that would not pay off the current debt.
Marco Rubio was right when he said, “It’s easier to sell cotton candy, than it is to sell broccoli to somebody, but the broccoli is better for you, and it is the same thing with a limited government.”
John Stossel said, “I’m an American. I’m for prosperity. I’ve discovered, from 40 years of reporting, that what creates prosperity is limited government.”
It seems to me that every year we have a budget battle. One party argues that we need more money to properly serve the citizens. The other party argues that we are too far in debt and must rein in spending or there will be dire consequences. Both parties rattle their sabers and argue that the other party must give in “For the good of the people, before the budget deadline!” We are bombarded with public service announcements (PSA’s) throughout the “crisis” telling us that if the budget is not passed payments to our military, social security recipients and many social services with be stopped causing catastrophies galore!!
I’m not sure how old I was the first time I heard that warning. I do remember that it caused me great concern. How will we function? Will there be no military guarding us? Will foreign countries see our weakness and attack? How long can those who need government checks hang on without them?
Have you all heard the story about the boy who cried wolf?
For anyone who hasn’t it’s a fairy tale with a message. A little shepherd boy is lonely and bored. He falsely cries out, “Wolf, Wolf!” Everyone from near and far runs to his aid. He is smothered with love and attention but, no wolf is found, and no signs of a wolf’s presence can be located. The townspeople are suspicious. The boy does it again, less people respond, and suspicion grows. Finally, one day, a wolf does come. The boy cries for help, and nobody comes.
Our politicians cry wolf every time the budget issue comes up. We, their townspeople, continue to respond- usually aligned behind our respective parties. That needs to stop. We need to join the smart townspeople and require a balanced budget. I think the line, “Don’t re-elect anyone!” appeared in the 1972 movie, “THE CANDIDATE” starring Robert Redford, that doesn’t really matter. My suggestion is, however, that we don’t re-elect anyone until this garbage stops.
Thanks for reading to the end. Please comment on whatever you liked or didn’t like and follow me @ aboomersthoughts.com if you liked this.
Phil